About this Statement
Coinsquare Capital Markets Ltd. (“Coinsquare”) is offering crypto contracts to purchase and sell Injective (INJ) in reliance on a prospectus exemption granted by the Canadian Securities Administrators (CSA) in the amended and restated exemptive relief decision dated October 11, 2024. The statutory rights of action for damages and the right of rescission in section 130.1 of the Securities Act (Ontario) and similar legislation in the other CSA jurisdictions do not apply in respect of a misrepresentation in this statement to the extent that a crypto contract is distributed under the above-noted prospectus relief.
No securities regulatory authority in Canada or any other jurisdiction has expressed an opinion about any of the crypto assets (or crypto contracts) that are available through Coinsquare’s platform, including an opinion that the crypto assets are not themselves securities and/or derivatives.
Coinsquare has compiled the information contained in this Crypto Asset Statement to the best of its ability based on publicly available information.
About INJ
INJ is the governance token of the Injective blockchain, a layer-1 network which markets itself as the blockchain built for finance. Injective has evolved into a high-performance financial settlement layer that supports multiple virtual machines (MultiVM), including WASM and EVM (inEVM), with support for SVM in development. While still leveraging the Cosmos SDK and Tendermint proof-of-stake for its core infrastructure, the network now unifies liquidity across these different virtual machine environments. Interoperability is facilitated through both the Inter-Blockchain Communication (IBC) protocol and specialized bridges, such as the Injective Bridge, enabling fast and low-cost asset transfers between Injective, Ethereum, and other major chains. Injective is available as the native asset of the Injective blockchain or as an ERC20 token.They are interconvertable via the Injective Hub, but the ERC20 token must be converted to native for staking. The current offering of INJ at Coinsquare is the ERC20 token only.
Risks
As with all assets, investing in INJ is not without some general risks. Many of these risks are identified and explained in our Risk Statement. In addition to the general risks, we outline some risks that are specific to INJ below. While we make an effort to identify every source of risk, we encourage you to do your own research and ensure you are comfortable investing in INJ.
INJ relation to the Cosmos Network
Although Injective remains a prominent IBC-enabled zone within the Cosmos ecosystem, its reliance on Cosmos-specific infrastructure has decreased with the introduction of its MultiVM architecture. While it continues to use the Cosmos SDK and CosmWasm for decentralized application development, the launch of inEVM in late 2025 has allowed it to support Ethereum-native tooling and applications directly. These developments position Injective as an independent financial layer capable of operating across multiple ecosystems rather than being solely intertwined with the Cosmos Network.This relation between the two networks could have the potential to impact market price of either asset based on news or movements in the other asset. Potential investors should be aware of the link between Injective and Cosmos and consider this when evaluating INJ for investment.
INJ relation to the Ethereum Network
The INJ ERC20 token that is offered by Coinsquare is dependent on the stability and security of the Ethereum Mainnet. Any fundamental issues with this network could impact the value of ERC20 INJ, or the operation of the Injective Hub bridge which allows interconversion of the ERC20 token with the native INJ blockchain asset.
INJ Burning
As of January 2026, approximately 6.85 million INJ tokens have been permanently removed from circulation through the protocol's burn mechanisms. Injective recently entered a more aggressive deflationary phase following the approval of governance proposal IIP-617, known as the "Supply Squeeze," on January 19, 2026. This protocol-level update permanently doubles the deflation rate by tightening token issuance parameters. This works in tandem with the existing weekly burn auction—where 60% of fees from integrated dApps are auctioned and burned—and the Community BuyBack mechanism launched in late 2024, which allows for additional supply reduction based on ecosystem revenue. Potential investors should be aware of the deflationary impact of burning, and also be aware that there has been increasing regulatory scrutiny from the United States SEC on tokens that employ a burning mechanism.
Coinsquare’s Due Diligence for Digital Assets
To be made available for trading on Coinsquare’s platform, a digital asset must pass the following due diligence reviews:
Coinsquare undertakes these three levels of due diligence in order to determine whether the digital asset is compliant with our legal and regulatory obligations, is secure, and has historical data supporting a beneficial business case. Coinsquare’s New Product Committee must provide final approval for a new digital asset to be made available on the platform.
References:
Other Useful Links:
Injective Twitter: https://twitter.com/Injective_
